OIL RISES TO RECORD
U.S. industrial production and home construction gained last month, the government said. Global oil use will rise to a record 82.2 million barrels a day this year, the International Energy Agency said earlier this month. Prices have surged 44 percent in New York this year on concern that demand won't be met because of supply disruptions in exporting countries.
``Economic growth is strong, as is demand,'' said Jay Saunders, an energy analyst at Deutsche Bank Securities Inc. in New York. ``There is no spare capacity outside of Saudi Arabia.''
Crude oil for September delivery was up 65 cents, or 1.4 percent, at $46.85 a barrel at 2:05 p.m. on the New York Mercantile Exchange. Prices rose to $46.95, the highest since oil began trading in New York in 1983. Futures have set intraday records all but one day since July 30. Oil was up 51 percent from a year ago.
In London, the October Brent crude-oil futures contract was up 36 cents, or 0.8 percent, at $43.05 a barrel on the International Petroleum Exchange. The September Brent futures contract reached $44.11 yesterday on the last day of trading, the highest since futures began trading in 1988.
U.S. industrial production rose 0.4 percent in July, led by manufactures of business equipment such as computers and semiconductors, the Federal Reserve reported. Housing starts rose 8.3 percent in July to an annual pace of 1.978 million new units, the Commerce Department reported. Building permits, a sign of future activity, also increased.
Other news in this section
